PENERAPAN MAQASID AL-SHARI‘AH PADA LEMBAGA KEUANGAN ISLAM

Islamic finance made its first appearance in the 1970s. Since its inception, Islamic finance has made phenomenal progress and progressed beyond its traditional market into a global phenomenon. The recent global financial crisis has also brought Islamic finance into navel attention. Regardless of the minimal impact accused on Islamic finance, the crisis offers an opportunity for introspection and evaluation. It is inevitable to determine whether it can be a viable alternative to conventional systems in global financial markets. Therefore, Islamic financial institutions must ensure that all transactions are in accordance with sharia, not only in the form and technical law, but more importantly, in their economic substance, which should be based on the objectives outlined by the sharia, also known as maqa>s}id al-shari>’ah. This article aims at examining the concept of maqa>s}id al-shari>’ah of Islamic jurisprudence in order to appreciate its contribution toward more comprehensive, rational and realistic answers to contemporary financial issues and thereby to increase the awareness of the maqasid approach in structuring and developing Islamic finance products. For this purpose, the author examine the literal and conceptual meaning of maqa>s}id al-shari>’ah and scrutinise its position in Islamic law. They also highlight the essential elements of maqasid al-shari'ah and explain how this approach may contribute to better solutions for various Islamic finance issues and challenge. Islamic finance as an institution based on the ethical and moral framework of Islamic law assumes a distinctive role in society. Furthermore, the maqa>s}id al-shari>’ah framework also implies that. The characteristics of Islamic finance institutions are shaped by higher Islamic legal objectives that emphasize overall social and economic goodness rather than infectious greed and infectious individualism. Productive benefits are commendable as long as they are in accordance with the principles of justice as determined in the sharia.

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Penerapan Maqashid Al-Shari‘ah Pada Lembaga Keuangan Islam

JES (Jurnal Ekonomi Syariah) ◽

10.30736/jesa.v3i1.39 ◽

2018 ◽

Vol 3 (1) ◽

Author(s):

Achmad Fageh

Keyword(s):

Islamic Law ◽

Global Financial Crisis ◽

Essential Elements ◽

Islamic Finance ◽

Minimal Impact ◽

Moral Framework ◽

Islamic Financial Institutions ◽

Principles Of Justice ◽

Conventional Systems ◽

Financial Issues

Islamic finance made its first appearance in the 1970s. Since its inception, Islamic finance has made phenomenal progress and progressed beyond its traditional market into a global phenomenon. The recent global financial crisis has also brought Islamic finance into navel attention. Regardless of the minimal impact accused on Islamic finance, the crisis offers an opportunity for introspection and evaluation. It is inevitable to determine whether it can be a viable alternative to conventional systems in global financial markets. Therefore, Islamic financial institutions must ensure that all transactions are in accordance with sharia, not only in the form and technical law, but more importantly, in their economic substance, which should be based on the objectives outlined by the sharia, also known as maqa>s}id al-shari>’ah. This article aims at examining the concept of maqa>s}id al-shari>’ah of Islamic jurisprudence in order to appreciate its contribution toward more comprehensive, rational and realistic answers to contemporary financial issues and thereby to increase the awareness of the maqasid approach in structuring and developing Islamic finance products. For this purpose, the author examine the literal and conceptual meaning of maqa>s}id al-shari>’ah and scrutinise its position in Islamic law. They also highlight the essential elements of maqasid al-shari'ah and explain how this approach may contribute to better solutions for various Islamic finance issues and challenge. Islamic finance as an institution based on the ethical and moral framework of Islamic law assumes a distinctive role in society. Furthermore, the maqashid al-shari’ah framework also implies that. The characteristics of Islamic finance institutions are shaped by higher Islamic legal objectives that emphasize overall social and economic goodness rather than infectious greed and infectious individualism. Productive benefits are commendable as long as they are in accordance with the principles of justice as determined in the sharia. Keywords: Framework, Maqashid al-Shari‘ah, Islamic Finance

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Islamic finance and the global financial crisis: an empirical study

International Journal of Financial Accountability, Economics, Management, and Auditing (IJFAEMA) ◽

10.52502/ijfaema.v3i3.52 ◽

2021 ◽

Vol 3 (3) ◽

pp. 62-69

Author(s):

Fadwa Errami ◽

Jamal Abnaha

Keyword(s):

Financial Institutions ◽

Global Economy ◽

Islamic Law ◽

Global Financial Crisis ◽

The United States ◽

Muslim World ◽

Islamic Finance ◽

Islamic Banks ◽

Islamic Financial Institutions ◽

The Global Financial Crisis

Islamic finance can no longer be dismissed as a passing fad or as an epiphenomenon of Islamic revivalism. Islamic financial institutions now operate in over 70 countries. Their assets have increased more than fortyfold since 1982 to exceed $200 billion. In 1996 and 1997, they have grown at respective annual rates of 24 and 26 per cent.1 By certain (probably overly optimistic) estimates, up to half of the savings of the Islamic world may in the near future end up being managed by Islamic financial institutions. The first Islamic banks were created in the 1970s, at the time when the aggiornamento of Islamic doctrine on banking matters was taking shape. At the time, Islamic banks were typically commercial banks operating on an interest-free basis. Today, as a consequence of broad changes in the political–economic environment, a new generation of Islamic financial institutions, more diverse and innovative, is emerging as the doctrine is undergoing a new aggiornamento. Perhaps the most important development has been the growing integration of Islamic finance into the global economy. There is now a Dow Jones Islamic Market Index, which tracks 600 companies (from inside and outside the Muslim world) whose products and services do not violate Islamic law. Foreign institutions such as Citibank have established Islamic banking subsidiaries, and many conventional banks – in the Muslim world but also in the United States and Europe – are now offering ‘Islamic products’ that are sometimes aimed at non-Muslims.

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The Framework of Maqasid al-Shari'ah and its Implication for Islamic Finance

ICR Journal ◽

10.52282/icr.v2i2.651 ◽

2011 ◽

Vol 2 (2) ◽

pp. 316-336 ◽

Cited By ~ 1

Author(s):

Ayraf Wajdi Dusuki ◽

Said Bouheraoua

Keyword(s):

Islamic Law ◽

Essential Elements ◽

Islamic Finance ◽

Islamic Jurisprudence ◽

Financial Issues ◽

Conceptual Meaning

This article aims at examining the concept of maqasid al-shari'ah of Islamic jurisprudence in order to appreciate its contribution toward more comprehensive, rational and realistic answers to contemporary financial issues and thereby to increase the awareness of the maqasid approach in structuring and developing Islamic finance products. For this purpose, the authors examine the literal and conceptual meaning of maqasid al-shari'ah and scrutinise its position in Islamic law. They also highlight the essential elements of maqasid al-shari'ah and explain how this approach may contribute to better solutions for various Islamic finance issues and challenges.

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Mushārakah—A Realistic Approach to the Concept in Islamic Finance and its Application to the Agricultural Sector in Pakistan

Arab Law Quarterly ◽

10.1163/15730255-12341270 ◽

2014 ◽

Vol 28 (1) ◽

pp. 1-39

Author(s):

Lutfullah Saqib ◽

Kellie W. Roberts ◽

Mueen A. Zafar ◽

Khurram Khan ◽

Aliya Zafar

Keyword(s):

Financial Institutions ◽

Agricultural Sector ◽

Islamic Law ◽

Lower Class ◽

Islamic Finance ◽

Financial Problems ◽

Human Survival ◽

Realistic Approach ◽

Islamic Financial Institutions

Abstract Food is one of the basic necessities that is imperative for human survival. The majority of farmers related to agriculture belong to the lower class and are hence not in a position to fulfil their agricultural needs. Therefore, they must borrow from various sources, e.g., from individuals, organizations, and/or banks, using interest-based lending, which Muslims are prohibited from doing according to the Sharīʿah. Here the concept of mushārakah (participatory mode of finance) is the best option. The present work discusses the application of such transactions to overcome farmers’ financial problems. In this article, the concept of mushārakah is first elaborated in light of classical/contemporary Islamic law literature referring to its rules and regulations followed by a discussion on how mushārakah can be effectively applied to the agricultural sector. The concepts of muzāraʿah (temporary sharecropping contract), musāqah, diminishing mushārakah (al-mushārakah al-mutanāqisah), and customer agency are critically analyzed in such away to make these fit and viable for farmers and Islamic financial institutions.

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Risk Management Disclosure In Malaysian Islamic Financial Institutions: Pre- And Post-Financial Crisis

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v29i2.7647 ◽

2013 ◽

Vol 29 (2) ◽

pp. 419 ◽

Cited By ~ 9

Author(s):

Rosnadzirah Ismail ◽

Rashidah Abdul Rahman ◽

Normah Ahmad

Keyword(s):

Risk Management ◽

Financial Crisis ◽

Financial Institutions ◽

Islamic Law ◽

Global Financial Crisis ◽

Emerging Market ◽

Risk Disclosure ◽

Font Size ◽

Islamic Financial Institutions ◽

The Global Financial Crisis

The East Asian financial crisis in 1997 and later the global financial crisis in 2007 and 2008 had a big impact on the corporate world as many companies and financial institutions collapsed during that period. Poor governance systems and lack of transparency in reporting including lack of risk reporting and disclosure were blamed as the roots of the problem. Conventional financial institutions have widely practiced risk management within their organization, but it is still under-developed in Islamic financial institutions due to new emerging market and unique business structures which are based on Shariah or Islamic law. Therefore, this study examined the risk management disclosure by all 17 Islamic financial institutions in Malaysia from 2006 to 2009, covering the period before, during, and after the global financial crisis. A disclosure checklist consists of mandatory and voluntary items developed to measure the level of risk disclosure. The descriptive result shows the risk management disclosure among the Islamic Financial Institutions was satisfactory. Analysis for a four year period revealed that the risk disclosure has greatly improved before and after crisis indicating that Islamic Financial Institutions have taken the necessary steps to improve their disclosure.

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PENGENTASAN KEMISKINAN DAN PENGEMBANGAN MASYARAKAT MELALUI MODEL KEUANGAN ISLAM BMT AL-ISHLAH CIREBON

BISMA (Bisnis dan Manajemen) ◽

10.26740/bisma.v9n2.p101-108 ◽

2018 ◽

Vol 9 (2) ◽

pp. 101

Author(s):

Muhammad Awaluddin Ardiansyah

Keyword(s):

Financial Institutions ◽

Poverty Reduction ◽

Islamic Law ◽

Financial Institution ◽

Financial System ◽

Islamic Finance ◽

Islamic Financial Institutions ◽

Islamic Economic ◽

A Charge ◽

The Right

Although in fact the conventional financial system has manifestly failed in the fair distribution of wealth, but Islamic financial system in Indonesia is not a strong alternative financial system. Market share of Islamic financial institutions are still low below 5% with growth of 34% in 2015. The data indicates the existence of problems in the implementation of the principles of Islamic finance though in terms of potential prospects. Islamic economic principles which have a charge values of justice, divinity, freedom and responsibility, the right should be a system of democratic economy in the economic empowerment of the poor. Some of the reasons based on the analysis of the field to be the cause of them; The first people are still accustomed to a conventional system that has been around longer, the second Islamic financial institutions are not ready completely adopt the Islamic financial system in particular lost Pofit product sharing (PLS), the third implementation of Islamic financial institutions require relatively high operating costs. On the above problems, the authors analyzed qualitatively descriptive of a theme study "Al-Islah BMT Cirebon as Islamic Financing Model for Poverty Reduction and Development". An analysis of the terms of the Muamalat Islamic law and court analyzes considering the author as a community development agency practitioners who use Islamic financial institutions Baitul Maat wa Tamwil (BMT) in technical operations. This simple paper notes that Islamic financial institutions in Indonesia has not fully practice the principles of Islamic finance because of certain interests. That has existed in Indonesia an Islamic financial institution which according to the principles of Islam in practice the empowerment of people out of poverty.

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Fatwa and Its Shariah Methodology in Islamic Finance

Journal of Fatwa Management and Research ◽

10.33102/jfatwa.vol2no1.121 ◽

2018 ◽

Vol 2 (1) ◽

pp. 133-179

Author(s):

Ahcene Lahsasna

Keyword(s):

Corporate Governance ◽

Key Words ◽

Financial Institutions ◽

Significant Role ◽

Islamic Law ◽

Islamic Finance ◽

Board Members ◽

Muslim Community ◽

Islamic Jurisprudence ◽

Islamic Financial Institutions

Abstract Fatwa plays a very significant role in Shariah by providing different resolutions and solutions to the Muslim community when it is needed to ensure the compliance with principles of Shariah and commends of God. It should be understood that fatwa is not confined to particular section in Islamic law but it covers the entire sections and subsection of Islamic law including business, finance and trade. Today, fatwa takes a different shape in Islamic finance; it is introduced and presented in the industry in the form of resolutions issued by Shariah board members who represent Shariah corporate governance body in the structure of the Islamic financial institutions. The resolution is further structured in the form of Shariah endorsement which is part and parcel of product approval as required by the regulators. The present paper discusses fatwa and its methodology in Islamic finance to ensure a sound process of issuing an accurate resolutions that comply with the rules and guidelines that have been set in Islamic jurisprudence. Key words: Fatwa, resolutions, methodology, sources of Shariah, Shariah board.

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Part II Islamic Law and Contracts in Practice, 8 Derivatives and Islamic Finance

Islamic Finance ◽

10.1093/law/9780198725237.003.0008 ◽

2020 ◽

Author(s):

Eisenberg David M

Keyword(s):

Risk Management ◽

Financial Institutions ◽

Islamic Law ◽

Islamic Finance ◽

Futures Options ◽

Finance Industry ◽

Considerable Debate ◽

Islamic Financial Institutions ◽

Lack Of Knowledge

This chapter studies how conventional derivatives—especially futures, options, and swaps—have been or may be based on bay’ salam, bay’ ʻurbun, and other traditional Islamic transaction structures. Bridging the gap between traditional Islamic transaction structures and conventional derivatives continues to be among the most urgent challenges facing the global Islamic finance industry, not least to provide Islamic financial institutions with a crucial tool for risk management. Salam and ʻurbun clearly illustrate the nature of the challenge to create Shari’a-compliant derivatives. Paradoxically, it is their deviation from the standard conditions for a valid sale contract that allow them to function to some extent as proxies for conventional derivatives. Among jurists, a consensus (ijma’) emerged as to the validity of salam, although special conditions were imposed not only to minimize gharar (uncertainty) and the kindred contractual defect of jahl (lack of knowledge), but also to reduce the possibility of riba (unlawful gain). There is still considerable debate among the various schools of law as to whether ʻurbun constitutes a valid sale contract under the Shari’a.

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The derivation of Shariah risk in Islamic finance: a theoretical approach

Journal of Islamic Accounting and Business Research ◽

10.1108/jiabr-08-2017-0112 ◽

2019 ◽

Vol 10 (5) ◽

pp. 663-678 ◽

Cited By ~ 1

Author(s):

Nurul Syazwani Mohd Noor ◽

Muhammad Hakimi Mohd. Shafiai ◽

Abdul Ghafar Ismail

Keyword(s):

Design Methodology ◽

Islamic Law ◽

Relevant Literature ◽

Essential Elements ◽

Islamic Finance ◽

Content Type ◽

Secondary Sources ◽

Theoretical Approaches ◽

Contractual Obligations ◽

Finance Theory

Purpose This paper aims to propose a derivation of Shariah risk from both the Islamic finance theory and theory of contracts in Islamic law. Specifically, it deliberates the derivation of Shariah risk following the contracts validity and apprises the readers of the Shariah risk issues currently under debate. Design/methodology/approach This study reviews the relevant literature and presents an analysis of contract rulings through evidence derived from the Qur’an, Hadith and other secondary sources of Islamic law. Various theories of Islamic finance and Islamic law of contracts are identified, to examine the general principles and essential elements and conditions of a valid contract. Findings This analysis asserts that any circumstances that may render invalidity of the contract will trigger Shariah risk. More importantly, this paper highlights the implications of invalid contracts, based on the opinion of Hanafi jurists, who concluded that Shariah risk may be derived from any void or voidable contracts due to the failure of the contractual parties to comply with Shariah contractual obligations. Research limitations/implications This paper emphasises the derivation of Shariah risk over theoretical approaches. It does not include an explanation in the form of any empirical model. Originality/value This is the first study that contributes to the field of derivation of Shariah risk, based on the theory from the Islamic law of contracts.

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Model Pembiayaan Syariah Dalam Mengatasi Praktik Sistem Tebasan Di Sentra Padi Nasional

AL-TIJARY ◽

10.21093/at.v4i2.1305 ◽

2019 ◽

Vol 4 (2) ◽

pp. 81-94

Author(s):

Nono Hartono

Keyword(s):

Human Resources ◽

Financial Institutions ◽

Research Method ◽

Islamic Law ◽

Qualitative Approach ◽

Islamic Finance ◽

Islamic Financial Institutions ◽

Long Time ◽

Main Factors

The objectives of this study to identify the implementation of tebasan practices, analyze the contribution of the role of Islamic financial institutions and develop a sharia financing model to solve the practice of tebasan. The research method used with a qualitative approach, through interviews with farmers and Islamic financial institutions. The results showed that the practice of the tebasan in Indramayu had been carried out for a long time by the community, this was due to the lack of understanding of Islamic law which made the farmers continue to carry out the practice. In addition, the contribution of Islamic financial institutions to solved the practice has not yet existed. The absence of limited capital human resources and businesses that have large risks are the main factors of Islamic financial institutions have not contributed. Islamic finance which can be a solution to solve the practice of tebasan source non-commercial financing (Al-Qardhul Hasan) and commercial financing (Salam, Musyarakah or Mudharabah).

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